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What makes you think that the tools at the central bank's disposal for printing money are sufficient to counter deflation? Quantative easing, government bailouts of private corporation and economic stimulus packages have all been tried in Japan. It didn't work. It won't work in the US either.

Buffett has become one of the richest men in the world by buying toll bridges or atleast businesses that can increase their revenues in an equivalent way to a toll bridge. That isn't luck, that's calculated. That said, alot of Buffett's businesses and stock holdings have so far only proven...

This discription does not entail what you'd expect when hearing "hedgefund job". In fact giving it that discription gives it the odour of a bate and switch. Also take note of the contingent "may" in the sentence that tells you that they may give you an additional 20% in firm's capital to your...

The identification of any external cause is necessarily variable and therefore has little meaning because you cannot possibly rule out other causes. Ofcourse as a journalist you're trained to ask these questions, but given how markets function the possible answers that they might yield are of...

Dear Journalist, Market direction is determined by inbalances in buying and selling. This inbalance causes prices to change in a certain direction until a balance is reached between buyers and sellers. During an inbalance the group of participants that is in the minority is able to demand...

The trend is still downwards. What we witnessed was a broad based short covering rally going into the weekend, affecting more than just the dollar. I expect that price will consolidate next week on lower volume and then it will resume its dominant down trend, so hold your position.

I don't see how this would curb speculation. If you think oil's going to double from current prices would you mind paying a .25% transaction cost on your oil stock or a .02% tax on the future? I wouldn't. The only thing that's going to be curbed is high volume, short term trading. From the...

Uncertainty is a fundamental aspect of life. Closing your eyes and taking a leap is a requirement in love. Not everyone is capable of doing this, but if you know you are, your question regarding what to do should be answered by now.

What are your criteria for entries/exits and stop placement, Masterchanger? You also seem to have increased your target price lower from 3.1455 on that last trade. What was your rationale for that? - Ferdinand

1) Compounded returns over time 2) FSEX, ES, metals, grains, stocks 3) From my home 4) I live in Europe so I trade during the late afternoons and evenings. Before the trading day begins I usually read bloomberg news and some opinion websites (zero hedge and the like). I check the over night...

Jack, you've talked about the "like kind" criterium by Keynes in several posts. Can you explain what this criterium is and how it relates to the market?

You could see the market turn in anything from oil and the USD to equities. I was also reading some large blocks of trades being dumped on a number of commodity stocks before the broader markets turned. This is not a news driven event, it's the new dominant trend taking shape after the bull...

You're asking God for war with Iran?

This article shows some very interesting insights in the nature of asymetrical warfare: there is no such thing as "al Qaida". The name al Qaida is banner that's adopted by groups sharing an ideology that can be traced back to Qutb and resistance to Arab socialism in the 1960s and '70s. Anyone...

Buying near-expiration options is indeed a flaw in his execution. There's a fundamental flaw in his trading method however that even perfect execution cannot repair. The flaw is that securities are not necessarily mean reversing while a mean reversion strategy will never be able to tell you when...

On a continued note: Short term trading contains the requirement of being able to oversee the long term consequences of your repeated actions. Because short term traders tend to be farsighted they let their actions be guided by short term losses or succeses as displayed by their p/l sheets...

I've been following this development with some interest. It's without say that if BIDU had reacted differently after the large gap up we would all be chearing had he made a 100k profit. It's ultimately not about us however, but about the risks that his style of trading burden him with. It's this...

The point of the article is to ask questions and then to continue asking them even as he answers them. Short covering and an increase in risk appetite are responsible for this rally. The increase in risk appetite came from high yields in corporate bond markets and an increasing expectation...

Commodities and metals in particular have reversed this week. In the next four weeks I think we'll see a sharp correction. Markets are reflexive which means that price trends reinforce themselves. Though at some point prices diverge too much with industrial reality and are no longer...

I like to track the market analists that are being interviewed by Bloomberg on the metals market. The result is a great picture of an ongoing narrative of which purpose it is to rationalize why prices are where they are. If you read through this narrative it becomes clear that expectancies...